Kentucky residents will see a short-term reduction on their utility bills thanks to President Trump’s tax plan.
Starting April 1, Louisville Gas & Electric customers will see their electric bills decrease by an average of 6 percent, and their gas bills by about 4.5 percent.
The Kentucky Public Service Commission says LG&E is saving money through changes to federal corporate tax laws and those savings are required to be passed onto ratepayers.
A reduced corporate income tax rate and the effect on deferred tax liabilities that utilities carry contributed to customers’ savings.
The tax plan, which went into effect at the start of the year, lowers the corporate income tax rate from 35 percent to 21 percent.
The savings will appear as a credit on customers’ bills and will last until April of next year.